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HomeMy WebLinkAboutminutes.council.20071126Regular Meetine Asaen Citv Council November 26, 2007 CITIZEN COMMENTS ........................ ..................................................................... COUNCILMEMBER COMMENTS ..... ..................................................................... RESOLUTION #97, SERIES OF 2007 -Property Acquisition BMC West ............. CONSENT CALENDAR ...................... ..................................................................... ORDINANCE #SQ SERIES OF 2007 - Code Amendment Historic Lot Splits........ ORDINANCE #51, SERIES OF 2007 - Historic Designation 28 Smuggler Grove.. ORDINANCE #52, SERIES OF 2007 - Fees for 2008 .............................................. ORDINANCE #53, series of 2007 -Am ending Liquor Code Server Education....... ORDINANCE #54, SERIES OF 2007 - Supplemental Appropriations .................... ORDINANCE #42, SERIES OF 2007 - 208 E. Hallam Establishing 5 TDRs.......... RESOLUTION #93, SERIES OF 2007 - 2008 Mill levy .......................................... RESOLUTION #94, SERIES OF 2007 -Adoption of 2008 Budget .......................... ORDINANCE #29, SERIES OF 2007 - 307 S. Spring Subdivision .......................... ...... 2 ...... 2 ...... 3 ...... 5 ...... 5 ...... 6 ...... 6 ...... 7 ...... 7 ...... 8 ...... 9 .... 12 .... 13 1 Reeular Meetine Aspen City Council November 26, 2007 Mayor Ireland called the meeting to order at 5:00 p.m. with Councilmembers DeVilbiss, Romero, Skadron and Johnson present. 1. Toni Kronberg requested Resolution #97, Contract to Purchase BMC West, be pulled from the consent calendar. Ms. Kronberg told Council she has been asked by people to work as a lobbyist in front of Council. Ms. Kronberg said she will disclose that when speaking before Council. Ms. Kronberg noted there is an advisory committee meeting December 4`h at 2 p.m. at the ARC. Ms. Kronberg said there should be clarity about the direction for the outdoor swimming pool. 2. Bill Wiener said acquiring the BMC parcel for affordable housing is great; he is an advocate for affordable housing. Wiener said he has problems with using sites for affordable housing that are open space. Wiener said he would like Council to adopt a statement that no employee housing will be built within the city on property previously used for civic purposes. Mayor Ireland said he would not vote to limit the affordable housing program. Wiener thanked Council for moving forward on making it possible to master plan the Lift 1 area. Tom Kirk said he would like Council to develop incentive for property owners rather than restrictions. 4. Marilyn Marks asked the procedure regarding Ordinance #48 and whether public comment will be taken. Mayor Ireland said if Council wants to continue Ordinance #48, Council will not take public comment on an ordinance that is not ready to be adopted; that would be fruitless. Ms. Marks said there are people present to speak to historic preservation in general. Mayor Ireland said Council will take public comment when they consider Ordinance #48. COUNCILMEMBER COMMENTS 1. Councilman DeVilbiss said he would like Ordinance #48 continued as he has requested additional material from staff. Councilman DeVilbiss also requested 307 S. Spring be heard last as he is recused from that item. Councilman DeVilbiss moved to continue Ordinance #48, Series of 2007, to December 10`h and to continue the public hearing; seconded by Councilman Johnson. Councilman Skadron asked what information Councilman DeVilbiss is asking for and how will that information be used by Council. Councilman Skadron said he wants this process to keep moving. Councilman DeVilbiss said he asked for a complete statement why each of the properties on the list is on the list, whether it is because of the architecture, the architect, the fact that some person of note had lived in the property, the site is of significance; whatever is deemed to have caused the property to be placed on the list. Councilman DeVilbiss said he would like to know who nominated the properties on 2 R~ular Meeting Aspen City Council November 26, 2007 placed them on the list. Councilman DeVilbiss said when Council votes on that list, they are endorsing that list; Councilman DeVilbiss said he would like to know more about a list before he endorses it. Councilman Romero said the fact that there will be information on who did the criteria on producing the list does not change the core direction. Councilman Romero states he favors repealing Ordinance #48 and going back to the code in 2002 with a set of conditions. Mayor Ireland said he favors continuing Ordinance #48 as it is not ready for consideration; this iteration does not include the 10 year certificate for properties not of interest. Mayor Ireland said the provisions for economic hazdship are unduly onerous. This ordinance does not create a process for outlining the criteria; sufficient incentives for an incentive based program are not in place. Mayor Ireland said he feels if a Council person requests more time and more information, Counci] generally defers to that request. All in favor with the exception of Councilman Romero, motion carried. Councilman Johnson moved to heaz Ordinance #29, 308 S. Spring last on the agenda; seconded by Councilman Romero. All in favor, Councilman DeVilbiss abstained, motion carried. 2. Councilman Skadron thanked the Aspen Skiing Company for the work done to get Aspen and Snowmass ski mountains open. 3. Mayor Ireland said he did not attend the EOTC meeting where subsidizing the bus from Aspen to Snowmass was discussed. Mayor Ireland said the decision will be made at another public meeting where Council will decide whether spending EOTC money to subsidize bus service is appropriate. 4. Mayor Ireland reiterated his plea for housing. Mayor Ireland said the Ski Company lost a lot of in-town housing in a fire. Mayor Ireland said anyone who has a spare room they could rent to seasonal workers, contact the city or the Ski Company. 5. Mayor Ireland said 3 of Council have grown moustaches for Movember, which is to raise awazeness about prostrate cancer. Mayor Ireland said men should get tested; early detection is important for treatment. 6. Mayor Ireland urged bicyclist, skiers, skateboazders, snowboarders to wear helmets. It can save lives. RESOLUTION #97, SERIES OF 2007- Property Acquisition BMC West Bentley Henderson, assistant city manager, told Council the city was approached by BMC Holdings when they decided to dispose of their property. The city entered into negotiations and has signed a contract to purchase this property for affordable housing. Henderson said up to 100 units could be built on this parcel. Henderson said the unit count works out to 20 units/acre with an average lot area of 2,000 square feet/unit. The Regular Meeting Aspen City Council November 26, 2007 subsidy would be $400,000 to $450,000 per unit. Henderson told Council staff has had discussions with outside agencies who may wish to partner on affordable housing. These are RFTA, the School District, AVH and Pitkin County. Henderson said these outside agencies are going to provide their needs, i.e. rentaUsale, size that would meet their needs. Henderson told Council this project would be paid for by a bond to cover several different housing projects, which would be guaranteed against the RETT. Councilman Romero asked if staff has met with other property owners in the area. Henderson told Council he has spoken with John McBride who would like to be involved in the project. Toni Kronberg pointed out the Lodge at Aspen Mountain bought the storage area at the ABC, which was denied for affordable housing because the ABC was supposed to be commercial. Mayor Ireland pointed out the Airport Business Center is not within Council's jurisdiction. Ms. ICronberg said the issue is how much locally serving business can the community afford to lose. Ms. Kronberg said with an affordable housing project in this area, there will be a bigger need for a pedestrian bridge. John McBride said he has problems with this proposal. McBride said it is a mistake to move the ]umber company. McBride said it is not possible to do what the city wants to do under the protective covenants. McBride told Council he has tried to establish a 1:1 ratio between businesses and living spaces, which is what exists at the ABC currently. McBride said the city proposal is too dense. McBride said this price is 3 times higher than anything currently at the business center. McBride said it is not wise the get affordable housing by sacrificing a long term locally serving business. Ron Erickson, housing board, told Council he is not speaking for the board, and he is 100% in favor of this project. Diana Serko, superintendent of schools, told Council she appreciates the opportunity to partner with the city. Ms. Serko said one of the most important components of a high quality community is a high quality educational system, which necessitates high quality staff. Ms. Serko said the school district is getting close to having no housing for staff. Bill Wiener stated he is totally in favor of affordable housing; however, he has problems when city open space is used for affordable housing. Wiener said he does not want to see the parking lot north of the Community Banks used for affordable housing. Mayor Ireland said building 90 to 100 units will not meet the currently affordable housing shortfall and is not ready to give up any possibilities for affordable housing. Mike Maple said it seems the city paid a lot of money for a use that is not yet permitted. Mayor Ireland reminded Council the city owns a 2 acre parcel, without access or utility, adjacent to the BMC West parcel which will give a total of 5 or 6 acres that can be developed. Henderson told Council there were a number of different entities interested in this parcel. Councilman Skadron noted the lumber yard business is not going away just because the city purchased the property; it could disappear for any number of reasons. Henderson said staff looked at the number of units, category type and base, and how many units will fit on the property. Henderson said the very preliminary proposal is two- 4 Regular Meeting Aspen City Couucil November 26, 2007 bedroom units of category 2, 3 and 4 and three-bedroom units in the same category range. McBride noted there are 200 foot setbacks for properties along highway 82. Councilman Johnson moved to adopt Resolution #97, Series of 2007; seconded by Councilman DeVilbiss. Mayor Ireland said he does not feel the city's purchase is driving the market; what is driving the market is demand from the outside world to own a piece of Aspen. Mayor Ireland said this property could be purchased by someone else; however, it is doubtful they would want to leave a lumber yard and build affordable housing. All in favor, motion carried. CONSENT CALENDAR Councilman Romero moved to adopt the consent calendar; seconded by Councilman DeVilbiss. The consent calendar is: Resolution #96, 2007 -Colorado Forest Management Improvement Act of 2007 Minutes -November 12, 2007 All in favor, motion carried. ORDINANCE #50, SERIES OF 2007 -Code Amendment Historic Lot Splits Chris Bendon, community development department, told Council this is a code amendment regarding historic preservation incentives. Bendon said the historic lot split incentive, which allows a second lot, has been in the municipal code for 20 years. When the mixed use zone was extended for Main street, the lot split for historic landmazks was not applicable to that zone. This amendment would allow property owners with historic landmazks in the MU zone to apply for lot splits. P&Z reviewed and recommended adoption. Councilman DeVilbiss moved to read Ordinance #50, Series of 2007; seconded by Councilman Johnson. All in favor, motion carried. ORDINANCE N0. 50 (Series of 2007) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, AMENDING SECTION 26.480.030 OF THE ASPEN MUNICIPAL CODE, SUBDIVISION EXEMPTIONS Councilman DeVilbiss moved to adopt Ordinance #SQ Series of 2007, on first reading; seconded by Councilman Johnson. Roll call vote; Councilmembers Romero, yes; Johnson, yes; Skadron, yes; DeVilbiss, yes; Mayor Ireland, yes. Motion carved. Regular Meeting Aspen City Council November 26, 2007 ORDINANCE #51, SERIES OF 2007 -Historic Designation 28 Smuggler Grove Councilman Johnson moved to read Ordinance #51, Series of 2007; seconded by Councilman Skadron. All in favor, motion carried. ORDINANCE NO. 51 (SERIES OF 2007) AN ORDINANCE OF THE ASPEN CITY COUNCIL APPROVING DESIGNATION Of THE PROPERTY LOCATED AT 28 SMUGGLER GROVE ROAD, LOT 2, OF THE JUKATI SUBDIVISION, CITY OF ASPEN, COLORADO TO THE ASPEN INVENTORY OF HISTORIC LANDMARK SITES AND STRUCTURES Sara Adams, community development department, told Council this is an 1880's miner's cabin. The property owner submitted for an Ordinance #30 determination in July and the city opened an application for historic designation. Ms. Adams told Council this meets the criteria for historic designation. It has the integrity to be considered as a local landmark. HPC voted in favor of designation. Mayor Ireland asked what benefits would accrue to the property owner. Ms. Adams said there are floor area bonuses, setback variances, TDRs, historic lot split, and tax benefits as well as a benefit to the community for preservation of a historic resource. Ms. Adams told Council the property owner wants to do a small addition; the designation is not voluntary but the property owner is being cooperative. Councilman Johnson moved to adopt ordinance #51, Series of 2007, on first reading; seconded by Councilman DeVilbiss. Roll call vote; Councilmembers Johnson, yes; Romero, yes; Skadron, yes; DeVilbiss, yes; Mayor Ireland, yes. Motion carried. ORDINANCE #52, SERIES OF 2007 -Fees for 2008 Councilman Johnson moved to read Ordinance #52, Series of 2007; seconded by Councilman Skadron. All in favor, motion carried. ORDINANCE NO. 52 Series of 2007 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, AMENDING THE MUNICIPAL CODE OF THE CITY OF ASPEN TO INCREASE CERTAIN MUNICIPAL FEES Councilman DeVilbiss said for second reading he would like a definition of who qualifies for senior admissions. Councilman DeVilbiss asked if the recreation fees refers to fees at the Aspen Recreation Center. John Worcester, city attorney, told Council recreation fees are all recreation programs; the ARC is one portion of the recreation department. Jonathan Goddes, recreation department, told Council the recreation department includes Reeular Meetine Aspen City Council November 26, 2007 the red brick, the ARC and the Ice Garden. Goddes said senior rates apply to people 62 and older. Rates for swimming are $7 for children and $9.50 for adults. Councilman Skadron asked how the rates are arrived at. Worcester said the city's philosophy is to charge to cover the services. The city manager's office decides the annual increase and each department reviews their costs and fees. Worcester said the city does not make a profit on any of these programs. Councilman Romero pointed out the golf fees are double digit increases. Councilman Romero said the philosophy is that the visitor fees support the local programs, and the junior golf program has double digit increases and the visitor fees are flat. Councilman Romero said he would like an explanation for second reading. Councilman Johnson moved to adopt Ordinance #52, Series of 2007, on first reading; seconded by Councilman Romero. Roll call vote; Councilmembers DeVilbiss, yes; Skadron, yes; Johnson, yes; Romero, yes; Mayor Ireland, yes. Motion carried. ORDINANCE #53, series of 2007 -Amending Liquor Code Server Education Councilman Romero moved to read ordinance #53, Series of 2007; seconded by Councilman Johnson. All in favor, motion carried. Richard Pryor, police deparhnent, told Council this is an amendment to the existing education requirements for liquor licensed establishments. The current requirement is that 75% of the servers have to attend alcohol awareness classes; this would add a requirement that 50% of the bouncers have to attend. ORDINANCE #53 Series of 2007 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN AMENDING SECTION 5.08.080 OF THE MUNICIPAL CODE TO INCLUDE TRAINING OF DOORMEN AND BOUNCERS AS A REQUIREMENT OF HOLDING A LIQUOR LICENSE IN THE CITY OF ASPEN Councilman DeVilbiss moved to adopt Ordinance #53, Series of 2007, on first reading; seconded by Councilman Skadron. Roll call vote; Councilmembers Romero, yes; Skadron, yes; DeVilbiss, yes; Johnson, yes; Mayor Ireland, yes. Motion carried. ORDINANCE #54, SERIES OF 2007 -Supplemental Appropriations Councilman DeVilbiss moved to read Ordinance #54, Series of 2007; seconded by Councilman Romero. All in favor, motion carried. ORDINANCE NO 54 (Series of 2007) 7 Regular Meetin¢ Aspen City Council November 26, 2007 AN ORDINANCE APPROPRIATING AN INCREASE IN THE ASSET MANAGEMENT PLAN FUND EXPENDITi7RES OF $38,500, AN INCREASE IN THE GENERAL FUND OF $439,150, AND AN INCREASE IN THE GOLF FiJND OF $52,090. Paul Menter, finance department, told Council this ordinance will be amended before second reading to add budget authority to purchase the BMC West property. Councilman DeVilbiss moved to adopt Ordinance #54, Series of 2007, on first reading; seconded by Councilman Skadron. Roll call vote; Councilmembers Skadron, yes; Romero, yes; Johnson, yes; DeVilbiss, yes; Mayor Ireland, yes. Motion carried. ORDINANCE #42, SERIES OF 2007 - 208 E. Hallam Establishing 5 TDRs Sara Adams, community development department, told Council this is a request to establish 5 TDRs for a barn property to the east of the Red Brick school. Ms. Adams said the barn is the only structure on a 3,088 squaze foot lot. Ms. Adams said the TDR program is an important incentive for historic properties and encourages the preservation of historic landmarks by permitting property owners to sever and to sell undeveloped floor azea in increments of 250 square feet each. Only historic landmarks are allowed to establish TDRs. The 250 square feet of development right is removed from the historic property through a deed restriction. This 250 squaze feet can be landed on anon-historic parcel, either in FAR or by increasing a unit size depending on the zone district. Ms. Adams said this removes development pressure from a historic parcel and is an overall community benefit. Ms. Adams said this request is for 5 TDRs of 250 square feet each, a total of 1250 square feet of development being removed from this property. Ms. Adams told Council HPC granted a 120 square foot bonus out of a possible 500 square foot bonus to the barn for the conversion of the gazage to living space. Ms. Adams said this is all interior; there aze no exterior changes. The 500 squaze foot bonus is another benefit available to historic properties. HPC found 120 square feet of the bonus would be permitted on this property. The applicant has volunteered to forego the remaining 380 squaze feet of the bonus, contingent on the severing of the 5 TDRs. Ms. Adams noted the review criteria analyzed the built development versus the maximum allowable floor azea to determine what nbuilt development rights could be established. Ms. Adams said the criteria aze met and the goals of the TDR program to remove development pressure from historic resources and to provide a financial incentive to property owners are met. Mayor Ireland asked the market value of a TDR. Ms. Adams said they are selling for around $250,000/TDR. Mitch Haas, representing the applicant, said this program provides a viable release valve for historic properties. Haas told Council this program was developed in 2003 pursuant to the historic preservation and design quality section of the AACP. The AACP states that this is to encourage the preservation of historic properties by permitting those property owners to sever and convey, as a separate development right, undeveloped floor area to be developed on a different, non-historic property in the city. Haas said this is R~ular Meeting Aspen City Council November 26, 2007 only the third application to apply for TDRs. Haas reiterated approval of this removes 1,250 square feet of floor azea of development from this landmazk site. This will also remove 380 square feet of floor area bonuses on this property and leaves the remaining build out on this pazcel at 17 squaze feet. Councilman Skadron asked if one of these TDRs equates to 147 square feet rather than 250 squaze feet. Haas said if the 5`" TDR, which is converting existing space in the garage to living space, is not created, it leaves a potential of another 147 square feet of addition, which is significant on this parcel. Haas said the goal was to leave only 17 square feet of development left on this parcel. Mayor Ireland opened the public hearing. Toni I{ronberg applauded the developer for being willing to preserve the historic character of the community. Bill Wiener brought up a point of privilege. Wiener said he developed a compromise for the historic preservation ordinance, which he presented to Council. Mike Maple also requested a point of privilege and presented an alternative historic preservation ordinance to Council. Mayor Ireland closed the public hearing. Councilman Johnson moved to adopt Ordinance #42, Series of 2008, on second reading; seconded by Councilman Romero. Councilman Romero said he would like to see this tool used to a greater extent throughout the community. It serves as an incentive to support historic preservation. Mayor Ireland agreed this is a powerful incentive for historic preservation. Councilman DeVilbiss agreed preserving a historic cabin in tact is an important reason to grant these TDRs. Councilman Skadron said the tool of TDRs only works if the program has integrity. Councilman Skadron said he would be concerned about a devaluation of that integrity. Roll call vote; Councilmembers Johnson, yes; Romero, yes; DeVilbiss, yes; Skadron, yes; Mayor Ireland, yes. Motion carried. RESOLUTION #93, SERIES OF 2007 - 2008 Mill levy Mayor Ireland noted staff figured out how much the mill levy could be credited and still leave revenue to accomplish the objectives from the 2005 TABOR ballot question funding Jenny Adair, sidewalks, hybrid buses and a pool at the ARC, and a recent ballot question increasing the mill levy to pay for a stone water program. Paul Menter, finance director, proposed a temporary tax credit against the voter approved mill levy rate of 5.41 mills; the temporary tax credit will be .481 mills which creates a net property tax mill levy rate of 4.929 mills. This mill levy rate will generate $6,066,183 in property tax revenue in 2008. This revenue is divided into $4,681,332 for the city's Reeular Meeting Aspen City Council November 26, 2007 general government operations and general fund asset management plan %2 and''/z. The $1,384,852 can only be used for the 4 projects approved by the voters. Over the 5 year TABOR exemption period 2006 to 2010, it will allow the city to collect an estimated $5,054,000 in excess property tax revenue above the TABOR limit. Menter noted this is approximately $1,950,000 more than was originally estimated at the 2005 ballot approved by voters. Menter said staff estimated the city would need $3.1 million to complete the 4 projects - Jenny Adair, swimming pool, buses and the ADA sidewalk improvements. Menter pointed out this resolution includes the property tax mill levy rate approved in November for the new storm water/clean river initiative. This mill levy was set at .65 mills to generate $799,935 in property tax revenue in 2008 for use on the storm water program. These two items create a mill levy rate of 5.62 mills, net mill levy rate after the proposed credit. Mayor Ireland pointed out if the city did not credit the mill levy, the rate would be 5.41 mills plus the new storm water mill of .65 for a total mill levy of 6.06. The adjusted mill levy rate, the credit plus the .65 mills approved in November will total a mill levy for 2008 of 5.579 mils. Menter noted an alternative mill levy credit of .611 mills, slightly higher credit, which is designed to provide sufficient funding to complete the originally anticipated scope of the 4 project approved in 2005. This would generate $4,530,000 in revenue over the 5 years. This would allow the city to complete the actual cost of Jenny Adair, $600,000 in hybrid buses, ADA sidewalk cost of $1,750,000 and $900,000 for ARC pool design and construction. The contingency for cost overruns is $325,000. Mayor Ireland said the city can use funds other than the mill levy to complete these projects without affecting the TABOR vote. Mayor Ireland asked if the city has ever offered a reduction of the mill levy. Menter said not in the last 17 years. Mayor Ireland said this proposal would lower the mill levy to 4.8 for general fund purposes. Menter noted this is a one year action of Council projected against amulti-year revenue collection amount. Menter said Council will look at the mill levy annually to see if changes in valuation would suggest another mill levy credit. Mayor Ireland said a credit of .611 will result in cutting the mill levy increase by about 45%. Mayor Ireland noted a credit of .611 will result in a savings of $48 for every $1 million in property valuation. Mayor Ireland opened the public hearing. Bill Dinsmoor said commercial properties pay 4 times what the residential properties pay. Dinsmoor said most lessees have triple net leases and all taxes are passed through from the property owners to tenants. Business people are picking up an inordinate amount of property taxes. Dinsmoor said .611 mills will give the city a large amount of revenue. Dinsmoor encouraged Council to be very conservative. Mayor Ireland noted the city does not have a way to change the ratio of residential to commercial taxation. Mike Maple said the .65 mill increase was proposed only a few months ago and a .61 credit still nets a higher tax rate than in that past decade. Maple said the total tax collection will increase by more in a single year than the past 7 years put together. Maple 10 ReEUlar Meeting Aspen Citv Council November 26, 2007 agreed the city should move forwazd with the voter approved projects. Maple said this would be a large jump in revenue and suggested a larger credit. Sue Smedsted, ARC advisory board, said the ARC advisory board supports staff's recommendation and believes the 5.41 mill levy should be maintained with a credit and to maintain full funding of the voter approved projects. Toni Kronberg said she has been asking for funding for an outside swimming pool for the past 17 years. Ms. Kronberg said she would like the Council to insure there is enough money to finish the pool project. Rachel Richards said over the past the city has looked at community and capital needs. One of the results was the purchase of the Red Brick. There was an investment in the ice garden and the hockey program. Ms. Richards said the city is in a good financial state because of past choices. Ms. Richazds said the pool and ARC has been a great investment for kids, tourist and locals. Ms. Richards said there are many second homeowners whose only contribution to the community is their property taxes. Mayor Ireland closed the public hearing. Mayor Ireland said he would like to approve the mill levy with a credit of .611 to generate $4,530,000 over the course of the TABOR exemption to fund the approved projects and to direct the staff to bring this back in one year to make whatever adjustments are needed. Mayor Ireland noted this is the first time the city has offered a credit against property taxes to reduce the impact of the mill levy and instead of raising $6.9 million; this will raise $4.5 million. Mayor Ireland stated this is the right thing to do. Mayor Ireland said people's incomes do not rise as fast as property values and increase in tax burden is felt heavily by many property owners. Mayor Ireland said in affordable housing, although values are lower, the percentage of the value of the house they pay on is the same. Mayor Ireland said this consideration has to be balanced against the needs of the community for things like a clean Roaring Fork River and to leave a clean river as a legacy. Mayor Ireland said Council has an obligation to accessible sidewalks. Mayor Ireland said the voters approved by a 62% vote an increase of .65 mills to clean up the Roaring Fork River. Mayor Ireland moved that Council adopt Resolution #93 with a credit of .611 mills and to come back next year to review the mill levy to keep on course to raise the money necessary to do the TABOR excess approved projects and to include the mill levy approved by the voters for storm water; seconded by Councilman Johnson. Councilman Johnson said the voters approved anti-tax measures in Colorado; these measures have had a negative effect state-wide. Councilman Johnson said lowering the mill levy has been a goal of Council's since the budget began. Councilman Johnson said voters approved these projects and want them finished and the city has an obligation to complete the projects. Councilman Romero stated he favors a permanent mill levy reduction. Councilman Romero said staff and Council have scrutinized the budget and the details. Councilman Romero said other taxing jurisdictions in the community are 11 Regular Meeting Aspen City Council November 26, 2007 going through this same analysis. Councilman Romero states he favor the credit and funding the voter approved projects as the right thing to do. Councilman DeVilbiss said once a community lowers the mill levy, they cannot raise it without voter approval. Councilman DeVilbiss said he is satisfied with the .611 mill credit. Councilman DeVilbiss said he would like to lower taxes more but this seems to be a good compromise. Councilman Skadron said he is basing his decision on fairness and adequacy. People are willing to pay taxes as long as the money is spent wisely, which this proposal seems to do. Mayor Ireland noted the Aspen mill levy is 1/6 of an Aspen resident's tax bill. Mayor Ireland said Council will appoint a citizen review board to go over the budget and expenditures to see where money can be saved in the city operation. All in favor, motion carried. RESOLUTION #94, SERIES OF 2007 - Adoption of 2008 Budget Paul Menter, finance director, noted the proposed 2008 budget is $104,744,905 which contains 3 pieces; the operational budget of $47,389,360, a 12% increase over 2007 budget; the capital budget of $31,316,480 and the debt service of $5,680,305 on outstanding bond and certificate of participation issues. Mayor Ireland opened the public hearing. Toni Kronberg asked Council to keep a place holder in the budget for pedestrian bridge across highway 82 at Buttermilk and ABC. Ms. I{ronberg said if there is not enough money to finish off the voter approved projects, will the money come out of other city funds. Mayor Ireland said the process did not envision all the money coming out of the property tax. Mike Maple said a budget of $104 million is extraordinary for a community the size of Aspen. Maple said Aspen does not have a growing number of visitors or population and a 12% increase seem out of line. Merrill Bolen asked why the debt service decreased. Menter said a series of bonds is being retired early. Mayor Ireland closed the public hearing. Councilman Johnson moved to adopt Resolution #94, Series of 2007, adopting the 2008 budget; seconded by Councilman Skadron. All in favor, motion carved. Councilman Johnson moved to continue Resolutions #98 and 99, Series of 2007, to December 3, 2007; seconded by Councilman DeVilbiss. All in favor, Councilman Romero abstained. Motion carried. Councilman Romero moved to suspend the rules and extend the meeting to 10 p.m.; seconded by Councilman Johnson. All in favor, motion carried. 12 Regular Meeting Aspen City Council November 26, 2007 ORDINANCE #29, SERIES OF 2007 - 307 S. Spring Subdivision Councilmembers DeVilbiss and Skadron were recused due to conflict of interest. Jessica Garrow, community development department, the applicant is requesting subdivision approval. Staff recommends approval of this request. The proposed redevelopment is of a 18,000 square foot lot in the C-1 zone. The lot currently houses a vacant parking lot and the Wienerstube and bike shop building. The new development would include 17,781 square feet of net leaseable; 12 affordable housing units divided among categories 2, 3, and 4, and 6 free market residential units. Ms. Garrow said there is a 47 space subgrade parking garage. Ms. Garrow said this application was originally accepted in 2006 before the land use moratorium; the application is not subject to code amendments arising out of the moratorium. When the application was made there were insufficient growth management allotments for the free market units. The applicant came in requesting exceptional project to allow allotments from the 2007 allotment pool. This project received approval from P&Z in November 2006; received growth management allotments for the commercial space, affordable housing units and 5 of the 6 free market units from P&Z in November 2006. Council reviewed this project in January and February 2007 to receive exceptional project designation. During 2007, the 2007 residential units were added to the pool. The applicant amended their application to receive the 1 free market until through the P&Z process rather than through exceptional project criteria requiring Council approval. The project went back to P&Z, and they granted the allotment. Ms. Garrow said staff and P&Z recommend approval of the project. Staff finds the proposal meets all the subdivision review criteria and has received all growth management allotments necessary for redevelopment. All affordable housing requirements are met on site; the applicant exceeds what is required by the land use code. Ms. Garrow told Council the land is suitable for subdivision and development; there is sufficient infrastructure in this area and no inefficiencies are created by this development. Ms. Garrow said the subdivision is consistent with other land uses existing in the area and development on this parcel will not adversely effect future development in the surrounding areas. Staff finds the proposal is consistent with the Aspen Area Community Plan. The project insures economic sustainability by providing spaces in the new building for the Wienerstube and bike shop as well as alley retail which will generate lower rents than a store fronting on the street. This is located within walking distance to the transit station as well as commercial and office uses. This proposal will exceed the 2006 IECC energy requirements by 50%. This is a high quality of design meeting the new commercial design standards, even though that is not required. Ms. Garrow told Council there are two requirements for affordable housing; one for commercial and one for free market residential. In a mixed use project, one is able to use the same affordable housing mitigation to meet both of the requirement. Ms. Garrow 13 Reeular Meetin¢ Aspen City Council November 26, 2007 pointed out net livable equal to 30% of the new free market net livable mitigation is required. The project provides affordable housing equal to just over 100% of the free market net livable. The code states affordable housing equal to 60% of the new employees generated must be provided through mitigation. In this redevelopment plan, the required mitigation is 25.6 employees; the on-site mitigation is 27 employees. This project exceeds the affordable housing in both circumstances. Ms. Garrow presented the sketch up computer modeling that staff has been working on to show the commercial core. The proposed building has been placed into the computer model to illustrate how the building fits into the area. Jim True, special counsel, reminded Council ordinance adoption requires 3 affirmative votes. Councilman Romero asked how much square footage of alley commercial will be available. Stan Clauson, representing the applicants, told Council there is about 2025 square feet that can be accessed from the alley and from the midblock passage. Ms. Garrow noted the code allows a project to mitigate for the use that generates the largest mitigation requirement. Mayor Ireland asked about the commitment to the IECC standards, how will it be measured and by whom. Ms. Garrow said the IEC code has been adopted by the city and requires a base standard. The applicant commits to exceed that by 50%. There will be an audit in 3 years; if the applicant does not meet that 50%, they will be required to retrofit the building to meet 50% or change tenant behavior. Mayor Ireland asked if staff knows how much energy this building is supposed to use, according to the IECC. Ms. Garrow said that is not known. Mayor Ireland asked how it can be compared if the base is not known. Ms. Garrow said there are 12 affordable housing units divided between categories 2, 3, and 4. The owner will have purchase rights on 3 of the units. If the owner units are not sold, they will revert to the housing office for resale. The housing office has recommended if these three category 2 units do not sell within 6 months, they can be used by the housing office. Mayor Ireland asked how many employees the free market section will generate. Ms. Garrow noted the land use code does not address that. Mayor Ireland said how staff can know the applicant is mitigating for the higher of the two uses. Ms. Garrow said the code says one is mitigated based on net livable and the other is based on employees generated. The free market unit requirement is not based on employees generated but on the amount of square feet. Mayor Ireland said the way this is proposed, the city could be getting as little as 30% of employees generated by this project. Mayor Ireland said the staff memo refers to the Wienerstube restaurant and their return to this building. Clauson said there is an agreement with the operators of the Wienerstube to relocate and there has been discussion with the bike shop about relocating into this building. Mayor Ireland said he has not seen an agreement or a manner for the city to enforce that agreement. Councilman Romero said the applicants have made a commitment to retain these businesses and if it unwinds, they would have to come back 14 Regular Meeting Aspen City Council November 26, 2007 to Council for approval. Clauson pointed out the building is designed to have a restaurant space, which would continue to be a restaurant space if it were not to be the Wienerstube. Mayor Ireland said he would like to see that commitment in writing. Mayor Ireland asked if Council has the ability to say a project is too large, too bulky or too massive or is that decision dictated by the code. True said Council's review is limited to the standards set forth in subdivision review. Ms. Garrow showed the Wienerstube building from the different directions. Clauson pointed out the variation in the roof lines with step backs from the street elevation and in the overall height. Clauson noted the midblock passage, the building from Spring street with the recess to be used as outdoor dining for the Wienerstube; the view from the alley and the affordable housing units, and their balconies; the garage entrance. Clauson showed the pedestrian access to the alley commercial which would be more affordable and smaller units. The Hyman elevation shows the variation in rooflines and setbacks as well as that the 30 and 60 foot modules have been maintained. Clauson noted the proposal has 3 category 2 units; the 6 free market units are in 12,758 square feet versus an allowable 18,000 square feet. The overall floor azea of 49,376 square feet is less than the allowable floor area of 54,000 square feet. This building does not require any variances. The 12 affordable housing units are provided on site. Andy Wisnowski, architect, told Council they will hire consultants to model the building to establish the energy baseline. The architects will have to implement strategies to take the energy savings beyond 50%. The modeling will establish if they are meeting that goal. Wisnowski said the owners will monitor the building to check the reality of the 50% less energy used. Mayor Ireland said at the review of another project staff was asked if one could determine how much energy would be used if the developer followed the existing code and staff stated that cannot be determined. Ms. Garrow said when this submits for building permit, the amount of energy can be determined. Councilman Johnson said he thought the applicants stated they would review and conform to the new design guidelines, even though it was not required. Clauson said the stipulated they would try and follow them and believe the project does conform. Councilman Johnson asked if any parking will be dedicated to the free market and affordable units. Clauson said one space/unit will be allowed for both free market and for affordable housing. Councilman Johnson asked if there is any evidence that alley spaces leads to lower rent. Bendon told Council staff is working on alley retail and each space and circumstances are different. Councilman Romero asked what percentage of the overall commercial square footage would be the alley-way commercial space. Wisnowski said it is around 10 to 15%. Councilman Romero noted there is commercial space on the second floor, which maybe office space. Councilman Johnson noted this application is no longer being reviewed under exceptional criteria; however, the applicants have stated they will abide by everything they have agreed to under that criteria. 15 Regular Meeting Aspen City Council November 26, 2007 Mayor Ireland opened the public hearing. Charles Cunniffe, property owner across the street, stated this building is not sensitive to the context of its neighbors; to the low lying buildings around it. Cunniffe said exceptional buildings should fit and be sensitive to the neighbors. Cunniffe noted the buildings on the north side of Hyman are proposed to be designated historic and will not have the freedom to add stories. Cunniffe said buildings on the south side of the street should have to be set back. This is the C-1 district, not commercial core zone. Cunniffe said projects should respect solar access and adjacent buildings. Christina Crandall, Patio Building, said the Patio Building is 28' high and this building will be 42'. All this neighborhood is from the same era. The proposed building will block the view from the Patio Building and will change the character ofthe neighborhood. This is an enormous building and is out of character with the neighborhood. Ms. Crandall asked why this building is not on the list of potential historic buildings; it was the site of the post office and the Wienerstube. Jeff Halverty said the applicant has proposed a well designed, fully integrated mixed use building with commercial, affordable housing, free market and parking. The design conforms to the AACP and design guidelines. The building is modulated. The applicants have a commitment from the Wienerstube. Halverty said he has not seen a project with 12 affordable housing units as part of its program in the downtown. Councilman Johnson moved to suspend the rules and extend the meeting to 10:30 p.m.; seconded by Councilman Romero. Councilmembers Johnson and Romero in favor; Mayor Ireland opposed. Motion carried. Steve Marcus, applicant, said this will have 12 affordable housing, 40 pazking spaces, which will be a benefit to the community. Marcus said commercial space, office space and pazking is needed in the community. Marcus reiterated they are not asking for any variations; they have mitigated for everything in the code. Toni Kronberg said the public notice is supposed to remain until the public hearing. The notice has not been on the building for several months. Ms. Kronberg said Council has discretion about mass, scale and height in the purpose section of the subdivision. Ms. Kronberg said the C-1 zone is a transition between the commercial core and residential. Ms. Kronberg said this building is out of scale and character for this area. Mayor Ireland closed the public hearing. Mayor Ireland said there is a problem in the community with affordable housing. When the code was amended, a deficit in housing was enacted and the city can no longer handle that deficit. This project will generate more employees than it houses, which means the city will have to spend money on transportation and provide more affordable housing. Mayor Ireland said affordable housing is no longer available in Basalt and Carbondale. Mayor Ireland said he likes the building, the variegated roofs; however, there is a problem with context. Mayor Ireland said he is frustrated about the energy commitments. Mayor Ireland said if the affordable housing have low ceilings and a view of the alley, 16 Regular Meeting Aspen City Council November 26, 2007 this maybe on the edge of what is desirable. Mayor Ireland said he needs to see more about the guazantee and retention of the Wienerstube. Kevin Willson, Wienerstube, told Council he has a signed 10 yeaz lease for this space at a reasonable rent. Clauson told Council this application was submitted in April of 2006. Clauson pointed out the highest elements of the building are 42' and there is only one section of a 30' module that attains that height at street front. The rest of the building is stepped back. Clauson noted until infill coder amendments, there were no requirements for redevelopment that included affordable housing. The impetus behind infill was to try and get developers to provide housing in the downtown area. Clauson said for the affordable housing calculations, the amount of commercial space would generate 11 affordable housing unit and using 30% for the free market space would generate 5 units for a total of 16 units. Under the current code, only the larger of the two needs to be mitigated. If this were additive, it would be 16 units and 12 are being provided. Clauson said the ceilings in the affordable units are 8' ceilings; all units have balconies and views to the south. Mayor Ireland moved to suspend the rules and extend the meeting to 11 p.m.; seconded by Councilman Johnson. All in favor, motion carried. Councilman Romero moved to adopt Ordinance #29, Series of 2007, on second reading conditioned on getting an assurance enforceable by the city to guarantee that the Wienerstube will have reasonable access to renting that space for a period of 10 yeazs and that the Council will have assurance from the chief building official that the energy goal represented by the applicants will be enforceable and Council will have the ability to mandate changes to make it comply should it fail to meet the goal as set forth in the ordinance, and that the alley spaces be no lazger than 500 square feet each; seconded by Mayor Ireland. Councilman Romero said the alley space size is to achieve affordable businesses. Mayor Ireland said the rental housing has to have the paragraph about the housing authority owning .O1%. Councilman Romero amended his motion to include that condition about .Ol %; seconded by Mayor Ireland Councilman Romero said an application has a certain level of reliance; the city has an extensive land use code. Councilman Romero said to try and correct what Council may feel are mistakes in that land use code through a particular application seems to be unfair and out of balance. Councilman Romero said there are components of the application he can support, the alleyway commercial; the affordable housing of 12 units in the downtown core. Councilman Romero asked if the applicants would consider using the basement more for commercial or commercial accessory rather than parking. Clauson said that change would add to the commercial net leasable and require additional housing mitigation. Also the spaces are needed for pazking, which does not lend itself to pedestrian circulation. Councilman Romero asked if there is extra pazking. Clauson said they have fully met the parking requirements for both housing and commercial. 17 Regular Meeting Aspen City Council November 26, 2007 Councilman Romero said he would like to get more affordable commercial space. Councilman Romero said there is a disconnect between the intended uses, the intensity of those uses, the need for housing, the need for additional attainable commercial and the need for the project to be viable for the applicants. Councilman Romero said he would like this design puzzle reworked to find a solution for everyone. Clauson said this application has been reworked several times. The issue of bringing people subgrade and providing light and egress is difficult. Councilman Johnson said he has interpreted this project under the land use code for the last 18 months. Councilman Johnson pointed out no building on this block or in town is being historically designated; they are being reviewed for potential historic designation. Councilman Johnson noted the new guidelines require when a development is within 28' of a historic resource, the new development be stepped down. This application would not come under that because the street is 75' wide. Councilman Johnson said one of the significant architectural features of the Patio Building, the round window, and the view from that window, will be compromised by this project. Councilman Johnson noted this application is the only infill project Council has seen that comes anywhere near providing affordable housing. This makes a 1:1 relationship between the free market and affordable housing square footage and is the exception to what has been seen by Council. Councilman Johnson stated he still find this to be an exceptional project from the standpoint of the relationship of the affordable housing and the free market square footage. The adherence to the new guidelines has been good, especially the differing roof lines, setback and midblock cuts. Councilman Johnson said he feels with the building department, the energy audit can be taken care of. Councilman Johnson said he does not see how the city can meet the goals of more affordable housing and more affordable commercial space without larger buildings. Councilman Johnson stated there are troubling aspect to the project, like getting assurance there will be affordable commercial space and how will that be verified. Councilman Johnson said he is concerned about this building is not on the potentially historic building when the buildings across the street are on that list. Councilman Johnson said he would like to continue this application until he can see a view study from the Patio Building and what can be seen of the new proposal. Clauson said they can provide that study through sketch up. Mayor Ireland moved to suspend the rules and extend the meeting to 11:15 p.m.; seconded by Councilman Johnson. All in favor, motion carved. Councilman Romero moved to continue Ordinance #29, Series of 2007, to December 3, 2007; seconded by Councilman Johnson. All in favor, motion carried. Councilman Romero moved to adjourn at 11:15 p.m.; favor, motion carried. in Kathryn,'. l~ocl'i, City Clerk 18